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Honestly why do banks accept this collateral when underwriting a loan? Stocks are known to be volatile, aren't there more stable assets you should collateralize
by murph-almighty 6y ago
Honestly why do banks accept this collateral when underwriting a loan? Stocks are known to be volatile, aren't there more stable assets you should collateralize (e.g. inventory, real estate)?
- throwaway98797 6y agoDepends on advance rate. Loaning 20% of the value of the collateral seems pretty safe on average.